tag:blogger.com,1999:blog-4969308011867083988.post5004183618252803775..comments2018-02-15T11:52:35.150-08:00Comments on Ọmọ Oódua: Buy Cheap cars in Nigeria ? - See where I bought mineỌmọ Oóduanoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4969308011867083988.post-70784466387248299172017-12-20T09:46:15.436-08:002017-12-20T09:46:15.436-08:00For those who don&#39;t know how exchange rate aff...For those who don&#39;t know how exchange rate affects the price of goods and services. <br /><br />Nigeria hardly produces anything which means almost everything consumed in nigeria has to be imported. The Global trading (import export) is done in dollars, which means if i am an importer or a car (for example) if I paid $1000 and another $300 to import it my cost is $1,300 which means that I want to sell that car I cannot sell it for less than $1,300 if it I lose money. <br /><br />Here is where exchange rate is important. <br /><br />If at the time I bought the car and imported it $1=200 naira that means the cost of the car is $1300x200 =260,000 Naira.<br /><br />If the car goes unsold for say 9 months and now the exchange rate is $1=400 naira that means that theoretically that 260,000 naira that i had before which was the equivalent of $1300 is now worth 260,000/400= $650 <br /><br />In order for me to break even on this car I now have to jack the price up to 520,000 Naira to get back my $1300<br /><br />Because People earn Naira in Nigeria, the value of their money does not follow the trend of the exchange rate which is why these car dealers are suffering.﻿<br /><br />eu4 console commandshttp://eu4consolecommands.com/noreply@blogger.com